Franchising – Stairway to Profits or Highway to Bankruptcy, making the right turn with VietRF
As you know, franchising is rated as the safest business model with a success rate over 90% by Entrepreneur Magazine. But facing a great investment decision of your career, 10% of the risk is enough to make many people falter.
So, what should we do to stay in the 90% success zone. VIETRF 2018 has the answer for you.
Finance is No. 1!
The opportunity to expand the market share and raise your brand to a new height always makes countless brand owners sleepless. But you need to keep a cool head to understand the opportunities and risks that are going to happen in the franchising world.
Some of the world’s largest brands still suffer failures in many markets, while some of them are adaptive and flexible enough to not only grow but also becoming a good example of successful franchising.
Before stepping out to a new territory, you must first understand yourself. The current financial situation is an important factor to figure out if your brand should be franchised at this time.
A lesson that most business owners only painfully recognize after failure is, the smaller the size, the more likely it is to succeed. Once became a chain, the franchisor must become a talented manager who knows how to work with dozens of franchisees and hundreds of their problems.
It’s not a race!
This is a classic story. The first store opened, with a unique idea and excellent management capabilities, the brand immediately became an overnight success. Many investors are eager to be franchisee, to copy your success. You quickly agreed because the first store is currently overwhelmed and often lose customers just because of inadequate capacity at peak hours.
After franchising to the second point, you must stay there day and night to make sure that your brand will not be affected by the quality of the franchisee. Suddenly, a myriad of issues appearing at the first store, with the founder’s absence, the quality of service and revenue are dropping dangerously.
Immediately, you stand in a dilemma situation. Will you return to the 1st place to preserve profits, or continue focusing on the 2nd location to continue increasing market share?
Unfortunately, there is no prefect answer in this case, a franchise starts to early is the one heading into the brink of bankruptcy.
Ms. Nguyen Phi Van, specialist in franchising and retailing, and content consultant of VIETRF will be available to answer all your questions during the seminars.
Whether or not to start franchising?
Below are the must-have check points if you want to start franchising:
Revenue and profitability at the current location: As mentioned above, the good financial foundation will be a good base for the success of a franchise. Only expand your market share if you know where your standing is.
Intrepid Staff: Energetic and willing to be in charge, staff in the active locations need to be able to ensure that the venue is working well without the owner’s supervision. Losing working moral, or worse, losing a good employee while developing will be a big hindrance that can derail the franchising plan of any brand.
Rules, rules, rules: Setting up a standard routine and ensuring that every branch will comply letter by letter will create a steady momentum. If you have only a few business locations, the rules can be broken sometimes, but after developed into a chain, each mistake can cause the whole chain big problems.
New markets always need good manager: In each individual market, having an experienced regional manager will help the franchisor to be somewhat less headache. It can be seen that in many big international brands, employees in the first place are always trusted by the franchisor to move to new locations.
If you want a team that can constantly grow, you must constantly seek talent with the passion and ability to grow rapidly in the future.
Always keep a cool head: Yes, expanding market share is always a great event. But do not let these emotions overshadow your decision-making ability. Learn about the new territory, study the opportunities and risks, and set specific and realistic business goals. Be calm before any unexpected results will occur.
Ready, set … Franchise!
We hope that this article has provided you with some insights into the opportunities and challenges of starting franchising. If you want to learn more, do not hesitate to visit the Vietnam International RetailTech & Franchise show (VIETRF) to have a face-to-face conversation with leading industry experts.
And if you are ready to franchise, become an exhibitor at VIETRF now! In 2017, the exhibition attracted over 30,000 visitors; including 12,000 buyers and franchisees.
With more than 150 franchise brands from Taiwan, Singapore, Malaysia, USA, Japan, the United States, Thailand and other European countries. In 2018, VIETRF is looking forward to many more visitors, buyers and franchisees, bringing countless of opportunities for all exhibitors.
Combined with a 1: 1 pre-arranged Biz matching Program held by the organizers, thousands of deals were signed in 2017.
Vietnam International RetailTech & Franchise show will be held from 10:00 to 17:00, from 1-3 November 2018 at SECC, District 7, HCMC.
Register for free Biz matching Program at: http://bit.ly/bizmatching
Please contact the below for more information:
Phone: +84 934511953
Email: [email protected]